WORLD TRADE  
ORGANIZATION  GPA/85 
10 November 2005 
 
 (05-5281) 
Committee on Government Procurement  
  
 
 
REPORT OF THE COMMITTEE ON GOVERNMENT PROCUREMENT 
(DECEMBER 2004 – OCTOBER 2005) 
 
 
 
I. GENERAL  
1. This Report covers the period since the Committee's previous Annual Report
1, that is 
December 2004 – October 2005.  It is issued pursu ant to Article XXIV:7(a) of the Agreement on 
Government Procurement. 
2. Since the last Annual Report, the Committee has held four formal meetings:  
on 16 December 2004, on 14 March, 21 July and 14 October 2005.2  The first two of these meetings 
were chaired by Mr. Niklas Bergström (Sweden) , and the latter two by Ambassador Tae-yul Cho 
(Korea).3 
3. The Committee has also held a series of in formal meetings, pursuing negotiations under 
Article XXIV:7 of the Agreement on Government Pr ocurement, in the weeks of 14 March, 30 May, 
18 July and 10 October 2005, respectively. 
4. The following WTO Members are covered by the Agreement:  Canada;  the European 
Communities, including its 25 member States;  Hong Kong, China;  Iceland;  Israel;  Japan;  Korea;  
Liechtenstein;  the Kingdom of the Netherlands with respect to Aruba;  Norway;  Singapore;  
Switzerland;  and the United States. 
5. Twenty WTO Members have observer status in the Committee on Government Procurement:  
Albania, Argentina, Armenia, Australia, Bulgar ia, Cameroon, Chile, China, Colombia, Croatia, 
Georgia, Jordan, the Kyrgyz Republic, Mo ldova, Mongolia, Oman, Panama, Sri Lanka, 
Chinese Taipei and Turkey.  Three intergovernment al organizations, IMF, OECD and UNCTAD, also 
have observer status. 
II. IMPLEMENTATION OF THE AGREEMENT 
A. THRESHOLDS  
6. In accordance with the Decision on Modalities for Notifying Threshold Figures in National 
Currencies4, Korea notified its threshold figures expr essed in national currencies for 2003-20045, and 
                                                      
1 GPA/82, dated 26 November 2004. 
2 GPA/M/25-27, dated 18 January, 13 April and 30 August 2005, respectively. 
3 At the meeting of 14 March 2005, the Committ ee elected Ambassador Tae-yul Cho (Korea) as its 
Chairman with effect as of the end of the week of 14 March 2005 (GPA/M/26, dated 13 April 2005, para. 2). 
4 GPA/1, dated 5 March 1996, Annex 3. 
5 GPA/W/251, dated 18 February 2003. GPA/85 
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 Switzerland notified its threshold figures e xpressed in national currencies for 2004.
6  The following 
Parties have provided information on their threshold figures expressed in national currencies for 2004-2005:  Canada;  the European Communities;  H ong Kong, China;  Israel;  Korea;  the Kingdom 
of the Netherlands with respect to Aruba;  Norway;  Singapore;  Switzerland;  and the United States.
7  
Japan has notified its threshold figures e xpressed in national currencies for 2004-2006.8 
B. NOTIFICATION AND REVIEW OF NAT IONAL IMPLEMENTING LEGISLATION  
7. The responses to questionnaire in the Decision on Procedures for the Notification of National 
Implementing Legislation9 were submitted by the Kingdom of the Netherlands with respect to Aruba 
on 23 November 2004, based on its present legislation, which was being amended.10  Given that 
Aruba has not submitted the text of its legislation, e ither current or new, as yet, at its meeting of 
21 July 2005 the Committee on Government Procur ement agreed to postpone the review of the 
national implementing legislation of the Kingdom of the Netherlands with respect to Aruba until all 
required documents have been made available to Parties.11 
8. In line with Article XXIV:5(b) of the Agreem ent on Government Procurement, Japan notified 
a change in its respective national implementing legislation.12 
C. STATISTICAL REPORTING  
9. Article XIX:5 of the Agreement on Government Procurement requires Parties to collect and 
provide, on an annual basis, statistics on their pr ocurements covered by the Agreement.  During the 
period under review, Japan h as reported statistics for 200113 and 200214, Norway has reported 
statistics for 200215 and 200316, Switzerland has reported statistics for 200217 and 200318, and Hong 
Kong, China has reported statistics for 2004.19 
D. CONSULTATIONS AND DISPUTE SETTLEMENT  
10. There were no matters raised under Artic le XXII of the Agreement on Government 
Procurement during the reporting period. 
                                                      
6 GPA/W/285/Add.7, dated 30 March 2004. 
7 GPA/W/285, dated 18 November 2003, GPA/W/285/Add.1-4, dated 28 November 2003, 
10 December 2003, 8 January 2004 and 29 January  2004, respectively, GPA/W/285/Add.6, dated 
15 March 2004 and GPA/W/285/Add.8-9, dated 17 June 2004 and 8 July 2004, respectively. 
8 GPA/W/285/Add.5, dated 4 February 2004. 
9 GPA/1/Add.1, dated 27 June 1996. 
10 GPA/81, dated 23 November 2004. 
11 GPA/M/27, dated 30 August 2005, para. 20. 
12 GPA/37/Add.2, dated 21 March 2005.  See also GPA/M/27, dated 30 August 2005, para. 21. 
13 GPA/70/Add.3, dated 5 July 2005. 
14 GPA/76/Add.3, dated 5 July 2005. 
15 GPA/76/Add.4, to be issued. 
16 GPA/80/Add.2, to be issued. 
17 GPA/76/Add.2, dated 9 February 2005. 
18 GPA/80/Add.1, dated 9 February 2005. 
19 GPA/84, dated 23 September 2005.  GPA/85 
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 III. MODIFICATIONS TO THE APPENDICES TO THE AGREEMENT 
(a) Modification by Israel regarding Offsets 
11. In November 2004, Israel submitted a communication20 with proposed modifications to its 
Note on offsets pursuant to Article XXIV:6(a) of  the Agreement on Government Procurement.  
Following informal consultations between interested  delegations, a draft decision was presented for 
adoption by the Committee.  At its meeting of 16 December 2004, pursuant to Article XXIV:6(a) of 
the Agreement on Government Pr ocurement, the Committee adopted21 that Decision.22  The Decision 
modifies Israel's Note to its Appendix I to the Agreement on Government Procurement:  it extends by 
one year the original deadline of 1 January 2005 fo r Israel's commitment to reduce the value of offsets 
from a maximum of 30 per cent to a maximum of 20 pe r cent of procurement contracts covered by the 
Agreement on Government Procurement.23  Following the adoption of the Decision, the representative 
of Israel stated that his delegation intended to con tinue the discussion on its offset rights in the course 
of 2005 with the objective of reaching a mutually agreed solution that would take into account the 
needs of Israel and all Parties with a view to  reaching a new balance of rights and obligations.24  
Several other Parties made statements on the Decision.25 
12. At the meeting of the Committee on 14 March 2005, the representative of Israel made a 
statement26 on offsets and on the Decision adopted on 16 December 2004.27  At the meeting of the 
Committee on 21 July 2005, the representative of Isr ael said that the Government of Israel had 
decided to renew its request to make modi fications in Israel's Note in Appendix I.28  His delegation 
intended to enter into negotiations with Parties on th is matter.  It wished to maintain its right to 
require offsets at the level of 30 per cent for an add itional period of time, and then to gradually reduce 
it to a specific, agreed upon level.  His delegati on understood that this could disrupt the balance of 
rights and obligations.  Bearing this in mind and respecting the need to maintain an appropriate 
balance, his delegation stood ready to explore the po ssibility of making additional commitments in the 
framework of the market access ne gotiations of the GPA on issues such as coverage of entities, goods 
and services, thresholds, and on other elements subject to negotiation.29  This was followed by 
statements by Canada and the United States.30  At the Committee's meeting on 14 October 2005, 
Israel indicated that, following discussions with othe r Parties, it intended to submit a new proposal for 
an interim period, for the purpose of modifying, under Article XXIV:6(a) of the Agreement, its commitments regarding offsets.  This proposal woul d be intended to serve as an interim arrangement 
as of 1 January 2006 and would be based on the following parameters: 
(a) the level of offsets in the proposal would not undermine the starting point of 
negotiations for the long-ter m solution in the future; 
                                                     
 
20 GPA/MOD/ISR/1, dated 19 November 2004. 
21 GPA/M/25, dated 18 January 2005, para. 3. 
22 Subsequently circulated as GPA/83, dated 17 December 2004. 
23 The modification of Israel's Note on Offsets to its Appendix I to the Agreement on Government 
Procurement took effect on 16 December 2004, and was certif ied in document WT/Let/485, dated 
10 January 2005. 
24 GPA/M/25, dated 18 January 2005, para. 5. 
25 GPA/M/25, dated 18 January 2005, paras. 6-10. 
26 GPA/M/26, dated 13 April 2005, paras. 3-6. 
27 GPA/83, dated 17 December 2004. 
28 GPA/M/27, dated 30 August 2005, paras. 23-26. 
29 GPA/M/27, dated 30 August 2005, para. 25. 
30 GPA/M/27, dated 30 August 2005, paras. 26 and 27, respectively. GPA/85 
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 (b) the new interim regime regarding offsets would be in place either until the lapse of a 
transitional period of [X] number of years,  or until the conclusion of the ongoing 
market access negotiations pursuant to Ar ticle XXIV:7, whichever would come first; 
(c) the above-mentioned period of [X] year s would be longer than one year;  and 
(d) it would be framed as an interim arrang ement in anticipation of a long-term solution 
that would take into account the interests of Israel as well as of other Parties, and the 
need to find a balance between the two.
31 
(b) Other Modifications 
Modifications that have been certified since the meeting of 17 November 2004 
13. During the reporting period, the following modifica tions have been certified, given that no 
objections were made in the 30-day period set  out in Article XXIV:6 of the Agreement on 
Government Procurement or because the objections  that had been made have been withdrawn 
subsequently with regard to all or some specific entities listed in such modifications: 
 (i) modifications by Hong Kong, China : 
 
 - GPA/MOD/HKG/232, effective as of 9 March 200533, given that no 
objections were made within 30 days; 
  - GPA/MOD/HKG/3
34, effective as of 15 August 200535, given that no 
objections were made within 30 days; 
 
 (ii) modifications by Japan : 
 
- GPA/W/27436, as regards all entities other than Japan Consumer Information 
Center37, effective as of 7 October 200538, given that the objections by the 
European Communities39 and the United States40 have been withdrawn41; 
- GPA/MOD/JPN/1642, effective as of 10 December 200443, given that no 
objections were made within 30 days; 
 
                                                      
31 GPA/M/28, to be issued. 
32 Dated 7 February 2005. 
33 WT/Let/491, dated 1 April 2005. 
34 Dated 15 July 2005. 
35 WT/Let/496, dated 23 September 2005. 
36 Dated 23 September 2003. 
37 The modification concerning Japan Consumer Information Center, also proposed in document 
GPA/W/274, was certified as of 29 January 2004 in WT/Let/469, dated 11 May 2004. 
38 WT/Let/500, dated 27 October 2005. 
39 GPA/W/279, dated 16 October 2003 and GPA/W/279/Corr.1, dated 29 October 2003. 
40 GPA/W/280, dated 17 October 2003. 
41 GPA/MOD/JPN/19, dated 3 June 2005 and GPA/MOD/JPN/22, dated 7 October 2005, respectively. 
42 Dated 10 November 2004. 
43 WT/Let/486, dated 10 January 2005.  GPA/85 
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 - GPA/W/27644, effective as of 31 May 200545, given that the objection by the 
European Communities46 has been withdrawn47;  and 
- GPA/MOD/JPN/2148, effective as of 12 October 200549, given that no 
objections were made within 30 days;  and 
 (iii) modification by Korea50, effective as of 26 May 200551, given that the objection by 
Canada52 has been withdrawn.53 
 
Proposed modifications that remain outstanding 
14. As to outstanding proposed modifications, the following developments, if any, have taken 
place in the reporting period: 
(i) Notifications by Japan  concerning proposed modifications relating to: 
- NTT54 
No developments in the reporting period. 
- East Japan Railway Company, Central Japan Railway Company and West 
Japan Railway Company55 
No developments in the reporting period. 
- Railway Construction Public Corpor ation and Corporation for Advanced 
Transport and Technology56 
No developments in the reporting period. 
- National Aerospace Laboratory57 
No developments in the reporting period. 
 
  
                                                     
 
44 Dated 8 October 2003. 
45 WT/Let/495, dated 24 June 2005. 
46 GPA/W/282, dated 7 November 2003. 
47 GPA/MOD/JPN/20, dated 3 June 2005. 
48 Dated 12 September 2005. 
49 WT/Let/501, dated 27 October 2005. 
50 GPA/W/207, dated 11 September 2002. 
51 WT/Let/494, dated 24 June 2005. 
52 GPA/W/217, dated 7 October 2002. 
53 GPA/MOD/KOR/8, dated 30 May 2005. 
54 GPA/W/91, dated 6 September 1999. 
55 GPA/W/144, 145 and 146, dated 29 August 2001 and GPA/W/152 and Corr.1, dated 20 September 
and 10 October 2001. 
56 GPA/W/272 and GPA/W/272/Rev.1, dated 23 September and 8 October 2003, respectively. 
57 GPA/W/275, dated 23 September 2003. GPA/85 
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 - Proposed modification to Annex 3 of Japan's Appendix I
58 
On 3 June 2005, the European Communities posed additional questions59 
with regard to this proposed modification. 
As to developments prior to the reporting period, the European Communities 
objected to this proposed modification and posed questions60, which Japan 
responded to in September 2004.61 
(ii) Notification by the United States  concerning proposed modifications to reflect 
changes in the administrative structure of the Federal Government62, as regards the 
Uranium Enrichment Corporation  
No developments in the reporting period. 
IV. ACCESSIONS 
15. Nine WTO Members are in the process of acceding to the Agreement on Government 
Procurement:  Albania, Bulgaria, Georgia, Jo rdan, the Kyrgyz Republic, Moldova, Oman, Panama 
and Chinese Taipei.  A further five WTO Members ha ve provisions in their respective Protocols of 
Accession to the WTO regarding accession to the Agreement on Government Procurement:  Armenia, 
China, Croatia, the Former Yugoslav Republic of Macedonia, and Mongolia. 
16. During the reporting period, the following develo pments have taken place with regard to 
accessions.  Based on the approach agreed upon at the meeting of the Committee on 
17 November 200463 to the accession process of Jordan  to the Agreement on Government 
Procurement, the European Communities submitted questions and requests64 regarding Jordan's 
revised market access offer65, and the United States submitted requests for improvements66 in Jordan's 
revised market access offer.  Jordan responded to those submissions on 13 June 2005.67 
17. At the meeting of the Committee on 14 March 200 5, Jordan made a statement reporting on 
developments in its accession process to the Agreement on Government Procurement.68  Jordan noted 
that, in light of those developments, it had turned out to be impossible to finalize and submit Jordan's 
second revised offer within the agreed time-frame.  Jordan looked forward to submitting the second 
revised offer to the Committee on ce the official approval of the Government and other internal 
procedures had taken place.  As to the review of  Jordan's government procurement legislation, the 
draft unified procurement law had been completed by the relevant committee, and had been submitted 
to the Government prior to undergoing the releva nt constitutional procedures .  Further details on 
Jordan's accession process are noted in the minutes of the meeting of the Committee on 
21 July 2005.69  At the Committee's meeting of 14 October 2005, Jordan made a further statement 
                                                      
58 GPA/MOD/JPN/7, dated 26 July 2004. 
59 GPA/MOD/JPN/18, dated 3 June 2005. 
60 GPA/MOD/JPN/10, dated 23 August 2004. 
61 GPA/MOD/JPN/14, dated 20 September 2004. 
62 GPA/W/153, dated 25 September 2001. 
63 GPA/M/24, dated 8 December 2004, paras. 51-57. 
64 GPA/ACC/JOR/5, dated 20 December 2004. 
65 GPA/ACC/JOR/4, dated 30 September 2004. 
66 GPA/ACC/JOR/6, dated 20 December 2004. 
67 GPA/ACC/JOR/8, dated 13 June 2005 and GPA/ACC/JOR/7, dated 13 June 2005, respectively. 
68 GPA/M/26, dated 13 April 2005, paras. 19-22. 
69 GPA/M/27, dated 30 August 2005, paras. 15-16.  GPA/85 
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 indicating that constructive bilatera l discussions had been held with  various Parties on its offer and 
legislative developments and that it hoped to present a revised offer in the coming months.70 
18. During the reporting period, no developments have  been reported in relation to the respective 
accessions of Albania, Armenia, Bulgaria, China, Croatia, Georgia, the Kyrgyz Republic, the former 
Yugoslav Republic of Macedonia, Moldova, Mo ngolia, Oman, Panama and Chinese Taipei. 
V. NEGOTIATIONS 
19. Article XXIV:7(b) and (c) of the Agreement calls on the Parties, not later than the end of the 
third year from the date of its entry into force,  to undertake further negotiations, with a view to 
improving the Agreement and achieving the greatest possible extension of its coverage among all 
Parties and eliminating any remaining discriminat ory measures and practices.  During the reporting 
period, Parties pursued their negotiations at inform al meetings in the weeks of 14 March, 30 May, 
18 July and 10 October 2005. 
20. The negotiations focused on the simplificati on and improvement of the non-market-access-
related provisions in the text of the Agreement, based on proposals made by delegations.  Following 
each informal meeting, proposals have been conso lidated into a single revised draft text, which 
formed the basis of the drafting work at the sub sequent meeting.  During 2005, the Committee made 
substantial progress on the revision of the non-market- access-related provisions of the text.  The main 
issues on which further work is needed in respect of these revisions were set out in the Chairman's 
statement on stocktaking and future work of 14 October 2005.71 
21. As regards the work pertaining to elements 2 and 3 of the work programme, namely the 
extension of coverage and the e limination of discriminatory measures and practices the Committee, at 
its formal meeting of 16 July 2004, adopted a Decision on negotiating modalities72, taking into 
account earlier submissions and discussions on el ements 2 and 3 of the work programme.  
In accordance with such modalitie s, Parties tabled their initial requests around the end of 2004.73  
Since the preparation of initial offers has taken l onger than foreseen in the initial Modalities Decision, 
at its meeting of 21 July 2005 the Committee adopted a further Decision74 (copy attached) postponing 
the dates for submission of initial offers.  In add ition, the Decision postponed the target date for the 
overall conclusion of the negotiations pursuant to  Article XXIV:7 of the Agreement to the end 
of 2006. 
22. At the informal meetings in the weeks of 14 March, 30 May, 18 July and 10 October 2005, 
delegations also conducted informal discussions on the so-called "horizontal" coverage matters that, 
pursuant to the original Modalities Decision, are to  be discussed by the Committee as a whole.  The 
discussions touched upon wr itten submissions by Canada75, Japan76 and the United States77 
concerning certain aspects of horizontal covera ge matters as well as various drafting proposals 
                                                      
70 GPA/M/28, to be issued. 
71 Job No. 7591, dated 18 October 2005. 
72 GPA/79, dated 19 July 2004. 
73 At the end of 2004, a special document series GPA/ O/... has been created for the circulation, through 
the Secretariat, of participan ts' official submissions relating to bilateral coverage negotiations, such as requests 
and offers.  For more information on the creation an d circulation of these documents, see the Committee's 
discussion on the circulation of requests in the bilateral coverage negotiations to participants, held at its meeting 
of 16 December 2005 (GPA/M/25, da ted 18 January 2005, para. 18). 
74 GPA/79/Add.1, dated 22 July 2005. 
75 Job No. 3228, dated 13 May 2005. 
76 Job No. 5105 dated 15 July 2005. 
77 Job No. 3373, dated 20 May 2005 GPA/85 
Page 8  
 
 relating to market-access-related provisions in the revised draft text of the Agreement.  Upon the 
request of delegations, the discussions ha ve been summarized by the Secretariat.
78 
23. Pursuant to the Modalities Decision, two observers, Jordan79 and Chinese Taipei80, have 
become participants in the bilateral coverage nego tiations in addition to Parties to the Agreement on 
Government Procurement.  At its meeting of 14 March 2005, the Committee discussed the issue of 
future work with regard to negotiations pur suant to Article XXIV:7 of the Agreement.81  At its 
meeting of 21 July 2005, the Committee discussed the state of play of coverage negotiations82 and 
adopted the above-mentioned revised timetable for negotiations.83 
                                                      
78 Job No. 2909/Rev.1 (3343), dated 19 May 2005;  Job No. 4321/Rev.2 (5082), dated 15 July 2005;  
and Job No. 5848/Rev.1 (6177), dated 5 September 2005. 
79 GPA/O/JOR/1, dated 23 December 2004. 
80 GPA/O/TPKM/1, dated 11 March 2005. 
81 GPA/M/26, dated 13 April 2005, paras. 8-18. 
82 GPA/M/27, dated 30 August 2005, paras. 5-6. 
83 GPA/79/Add.1, dated 22 July 2005.  GPA/85 
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ATTACHMENT 
  
 
WORLD TRADE  
ORGANIZATION  GPA/79/Add.1 
22 July 2005 
 
 (05-3317) 
Committee on Government Procurement  
 
 
 
MODALITIES FOR THE NEGOTIATIONS ON EXTENSION OF COVERAGE AND 
ELIMINATION OF DISCRIMINATORY MEASURES AND PRACTICES 
 
Decision of 21 July 2005  
 
Addendum  
   
 The Committee on Government Procurement, 
  Noting  that the preparation of initial offers as called for by the Committee's Decision on 
Modalities for the Negotiations on Extension of Coverage and Elimination of Discriminatory 
Measures and Practices (GPA/79) requires extensive r esearch and internal consultation and, therefore, 
is taking longer than initially foreseen; 
  Reaffirming  the importance it attaches to the successful completion of these negotiations; 
 
 Decides that: 
 
 (i) each Party shall table its initial offer pr ior to the October meeting of the Committee 
(week of 10 October 2005) but not later th an the Hong Kong Ministerial Conference 
(13-18 December 2005);  and 
  (ii) the negotiations on extension of coverage  and elimination of discriminatory measures 
as well as other aspects of the Article XXIV:7 negotiations aim to be concluded by 
the end of 2006. 
  
__________